Inco's net profit drops by 95 percent

Nickel mining company PT International Nickel Indonesia (Inco) reported that its net profits as of the end of third quarter of this year reached only $1 million, falling 95 percent from $15.3 million recorded in the same period last year.

Meanwhile, total sales reached $72.5 million, compared to $98.5 million at the end of the third quarter last year.

Because of the sharp fall of the profit, Inco did not book any net profit per share, as compared to $0.07 per share last year.

Inco president Rumengan Musu attributed the sharp drop of the profit to the weakening global economic situation, and falling nickel prices in the international market.

Inco sold its nickel matte at $4,733 per tons, as compared to $6,384 per tons last year.

On the other side, Inco is producing nickel nearing its maximum capacity.

Nevertheless, Musu said, Inco had paid out a total of $38.5 million in foreign debt as of Sept. 30, and its interests of $11.3 million.

"We will continue to pay our debt, and therefore, we will save our cash due to the weakening nickel market," he said.

Meanwhile, Inco finance director Andre C. Daenuwy explained that as of the end of September, the amount of nickel matte at its storehouse reached 2,055 tons, as compared to only 932 tons at the end of June, and 1,365 as of the end of last year. (*)